Key deals to watch out for in Singapore's data centre market

A new 7-storey data centre worth USD88m is set for completion by 2026.

According to a recent report by JLL, data centre demand has begun to spread to nearby markets, primarily Johor (Malaysia) and Batam (Indonesia), which are becoming satellite areas supporting Singapore’s data centre ecosystem. Other Southeast Asian markets like Jakarta, Bangkok, and Kuala Lumpur are also benefiting from this spillover.

"The SEJOURI pact (Singapore, Johor, Riau Islands) aims to strengthen ties between these regions, with Singapore providing intellectual property and investment, while Malaysia and Indonesia offer land, energy, and lower-cost labor," the report added.

Here's more from JLL:

ST Engineering plans USD 88 million investment for new 7-story data centre with completion expected 2026.

The Singapore government is aggressively steering the data center sector towards sustainability in 2024 through a multi-pronged approach encompassing the Green Data Centre Roadmap, enhanced Green Mark standards, targeted incentive programs, and a strong push for innovation.

Keppel completed Keppel DC Singapore 8, a fully-leased 100,882 sq ft data centre at 82 Genting gate

The impact of SEJOURI (Singapore, Johor, Riau Islands) pact and spillover demand has begun to spread to nearby markets, primarily Johor (Malaysia) and Batam (Indonesia), which are becoming satellite areas supporting Singapore’s data centre ecosystem. Other Southeast Asian markets like Jakarta, Bangkok, and Kuala Lumpur are also benefiting from this spillover.

This strategic partnership enables Singapore to manage its carbon footprint while maintaining its digital leadership. The SEJOURI pact facilitates the distribution of workloads and resources across the region, with Singapore acting as the centre point of influence.